Capital Gains Tax on Second Property Sales

September 2, 2021

From the 6th of April 2020, the Capital Gains Tax reporting and payment dates have changed for UK residents that sell a residential property. Following this, all Capital Gains Tax due on residential property sales will now need to be reported and any payments made on account of due Capital Gains Tax made within 30 days of the completion of the transaction as per the imposed 30-day rule.

These changes will not affect the majority of people due to the fact that these changes only apply to residential property sales that are not qualified for Private Residence Relief. Private Residence Relief applies to residential properties that are used entirely as the primary family residence. Due to this, HMRC have made a list of properties that will be affected, these include:

• Any properties that are not used as a main home.

• Any holiday homes.

• Any properties used for residential letting.

• Any inherited property that is not used as your main home.

If the Capital Gains Tax due on the sale of a UK property is not paid within 30 days of the sale then there are potential penalties and interest that may be incurred.

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